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Green Dragon Gas (GDG:AIM) $6.50

If Green Dragon’s CEO and chairman Randeep Grewal is right and it takes seven years to build a successful coal bed methane (CBM) business, then 2008 could be when all the company’s hard work pays off. Having spent around that amount of time developing a CBM portfolio in China the company will receive its first revenue from gas sales in the second quarter as its Shizhuang South project comes on stream. The group, which also has some downstream interests, has plenty more acreage to develop in China and it has created an in-house drilling division, operational by the middle of the year, which should ensure it can drill more wells, more quickly. Positive updates could help propel the stock to Merrill Lynch’s price target of $10.8